Fredrick James-Educating the Masses to Help You Save On Taxes

Posts Tagged ‘invoicing policy’

So now that you have set up new AR policies what is to be done about the business’s that already owe you money? Well, now is the time you have to become resolute in your mission to preserve your business and take action to collect the debt owed to you. I won’t tell you this is an easy or pleasant prospect. On the contrary, you will be facing clients you may have worked with for years and this may be the first time you’ve ever had to deal with them being delinquent. Keep this in mind and approach the matter in a sensitive manner with the thought of preserving the relationship for future transactions if possible.

Unfortunately, you are looking at self preservation at this point and a line needs to be drawn. So, your first step will be putting your client’s account on hold until payment is received. You may want to offer to allow a prepaid account for future services and invoices so you know current services are covered while they are paying off their past invoices.

Read the rest of this entry »

In our previous blog we began exploring the benefits of changing your invoicing policy and how that one small change can effectively save you from becoming a casualty of your clients cash flow problems. Today we are looking at the specifics as to how to go about putting that plan into action.

Very few business owners start their company with the goal of becoming collection agents, so being put in that position can lead to avoidance. You have a personal relationship with your clients and it can become an emotional issue for many small business owners—who wants to add stress to people you know are already struggling? So let’s take the emotional baggage out of the equation by setting up some simple guidelines that communicate your expectations and provide more up to date information for your clients that will help them better budget their payments so you get to avoid being “the bad guy”.

Read the rest of this entry »